The City today digested news that one of the best-known figures in London finance could soon be moving on.

Tullett Prebon is hunting for a replacement for Terry Smith, the outspoken and well-regarded City figure who has headed the interdealer broker since its demerger from Collins Stewart in 2006.

Former Nomura and Lehman Brothers executive John Phizackerley is said to be the front-runner to replace Smith, who is believed to be planning to leave the job by the end of the year to focus on other business interests.

Gary Greenwood at Shore Capital said: “Investors may worry that [Smith’s departure] reflects broader concerns about the future prospects of the company.”

Tullett Prebon has struggled to adapt to low volatility and cut backs at banks in recent years, both of which have hurt business. Tullet’s pre-tax profit last year slumped 11% to £99.6 million.

Greenwood added: “Another angle is that Smith’s departure may leave the company vulnerable to a takeover in an industry where the need to consolidate is arguably increasing.”

Despite Smith’s heading for the exit and a Sell rating from Shore Capital, Tullett rose 7.3p to 297.35p, with traders keen to take a punt on whatever the future might hold.

The Footsie slipped 22.51 points to 6841.59, with a lack of stellar earnings or economic news. The sore thumb sticking out was plumbing group Wolseley, which added 94p to 3402.5p after strong third-quarter performance.

British Land announced the £72 million sale of Leamington Shopping Park, a site it has been acting as an asset manager for. British Land, down 2p at 717.75p, gave the park a makeover, transforming it from a place to buy carpets and leather sofas to a destination for fashion-conscious shoppers looking for trendy togs.

On the mid-cap index, Betfair raced ahead 7p to 991.5p ahead of preliminary results next week after a positive note from Numis. The broker thinks the betting exchange will sit on its near £200 million cash pile for a while, but investors can expect an acquisition or cash return in the medium term.

Recently re-branded steel supplier Severfield has bounced back from its disastrous experience with the Cheesegrater, today announcing a full-year pre-tax profit of £4 million for the year end March. It contrasts with a loss of £21.5 million for the year previous and chief executive Ian Lawson said the company is “well placed for future growth”. But a dip in revenue caused Severfield to fall 1.5p to 55p.

African-focused oil and gas explorer Bowleven jumped 4p to 37.62p on AIM after it reached a “key milestone”. Cameroon has formally approved the company’s offshore operations, which paves the way for Bowleven to start supplying treated gas to a government-sponsored fertiliser plants.